Issues of concern to people who live in the west: property rights, water rights, endangered species, livestock grazing, energy production, wilderness and western agriculture. Plus a few items on western history, western literature and the sport of rodeo... Frank DuBois served as the NM Secretary of Agriculture from 1988 to 2003. DuBois is a former legislative assistant to a U.S. Senator, a Deputy Assistant Secretary of Interior, and is the founder of the DuBois Rodeo Scholarship.

Friday, November 30, 2012

Federal investigation into lamb pricing launched

The federal government will investigate rancher complaints of unfair lamb prices, which have collapsed for producers even as market prices have skyrocketed. The Grain Inspection Packers and Stockyards Administration notified producers earlier this week that its Denver office is looking into the drastic changes in price spreads. Ranchers have seen lamb profits evaporate as prices of more than $2 a pound a year ago fell to less than a dollar this fall, while at same time retail prices hit $7 a pound in some areas. The U.S. Department of Agriculture responded to the collapse by buying lamb, which should have helped ranchers and closed the price spread. But ranchers say the benefits of the federal commodity purchases never reached the farm and ranch gate. Severe drought in sheep country helped trigger the purchases. “There’s no drought assistance for meatpackers,” said Peter Orwick of the American Sheep Industry. “I can see where the spread is. I can’t see where they helped the farm-ranch gate price.” Lawmakers from several Western states, among them Democratic U.S. Sens. Max Baucus and Jon Tester of Montana, wrote to the USDA in October requesting the investigation. So did the Billings-based Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America, which saw similarities between pricing problems for lambs and cattle...more

Of course the commodity purchases didn't help the ranchers. But the purchases did help the politicians get through the election cycle. I also can't help but note Tester was up for re-election this year and his letter was conveniently sent in October, just before the election. It worked for him and we can expect similar exploits from our buddies in the Senate. Things won't change until the folks wake up and bring an end to it.